'Heavy debt' and declining ad income

Elon Musk, the CEO of Tesla and SpaceX as well as Twitter's CTO and executive chairman, stated early on Saturday morning that the social media company's cash flow is still negative due to "heavy debt" and a roughly 50% decline in advertising income.

Musk replied to a tweet with, "Need to attain positive cash flow before we have the luxury of anything else.

In an October 2017 acquisition estimated at around $44 billion, including nearly $13 billion in debt, Musk acquired Twitter. 

He raised money for the transaction in part by selling shares in Tesla valued at billions of dollars.

After Musk drastically reduced the number of employees at the firm and made changes to the platform, including reinstating previously banned accounts and altering its approach to content moderation, hundreds of advertisers lowered or stopped spending money on Twitter ads by the end of January.

According to Musk, "almost all" sponsors had started purchasing Twitter advertisements in April, he told a BBC reporter. At the time, he also asserted that the business was "roughly breakeven" and anticipated turning cash flow positive within the next quarter.

- - - - - - Click To Get Access To PaidOnlineWriting jobs!! - - - -

A little more than a month has passed since Linda Yaccarino, who formerly oversaw global advertising for Comcast's NBCUniversal, assumed the position of CEO of Twitter, made his comments concerning the company's cash flow issues. CNBC's parent company is NBCUniversal.

Yaccarino's hiring spurred anticipation among media industry insiders that Twitter would address immediate problems to its ad revenue.

In recent days, Twitter begun doling out a percentage of its ad revenue to certain content producers on its site. Musk responded to followers who questioned why that revenue-sharing arrangement had such a narrow reach with his comments.

- - - - - Click To Get Access To Lifechanging Marketing Secrets - - - -

Many popular Twitter accounts remarked that they were disappointed because they were not yet eligible to receive cash from the scheme. 

The revenue-sharing scheme, as previously reported by The Verge, was only accessible to users who paid for a Twitter Blue verified membership, and payments were "driven by ads placed in the replies to tweets."

Influencer Andrew Tate, who promotes sexist ideologies online and is currently being tried in Romania for rape, human trafficking, and organizing a gang to sexfully exploit women, said that Twitter paid him more than $20,000 for his work. Tate filed a lawsuit against the people who made those accusations.

Along with supporters and advocates of Tesla stock and goods, a number of right-wing influencers wrote about getting Twitter payments. These individuals included Omar Qazi (who tweets under the handle "@WholeMarsBlog") and Sawyer Merritt, who each disclosed receiving more than $5,000.

- - - - - - Click To Get Access To PaidOnlineWriting jobs!! - - - -

Brian and Ed Krassenstein, Mr. Beast, and the account @interneth0f (which stands for Internet Hall of Fame) are examples of mainstream and other influencers that disclosed information about their Twitter revenue. The Internet Hall of Fame shares screenshots of other people's widely read social media postings.

The total amount that Twitter paid creators in this initial round of payouts is unknown. CNBC's request for feedback on Saturday was met with an automatic message from Twitter that included a vulgar symbol. 

The parent company of Twitter, X Corp., is being sued in several cases by former workers and suppliers for unpaid invoices and severance.

- - - - - - Click To Get Access To PaidOnlineWriting jobs!! - - - -

Thank you for reading my article! I appreciate you taking the time to read my work and I hope you found it informative and helpful.

If you enjoyed the article, please share it with your friends and followers on social media. You can also follow me on Medium to stay up-to-date on my latest articles.

"I'm always happy to hear feedback from my readers. If you have any thoughts on this article, please leave a comment below"